Cryptocurrency scams run rampant in the relatively new and unregulated crypto industry, Bitconnect being the most famous with a staggering $2.6 billion stolen at once. However, there is another scam that trumps Bitconnect, but most people have never heard of it.
The scam we speak of is from the cryptocurrency issuer OneCoin, which allegedly ran a $4 billion pyramid scheme and is now being sued by Christine Grablis, an investor who lost about $130,000.
OneCoin Duped Investors Worldwide of $4 Billion
It has come out that OneCoin is indeed a Ponzi scheme, having falsely advertised to investors that the company was operating mining pools that could be accessed through purchasing its tokens. In actuality, no mining of OneCoin tokens ever occurred.
As reported by TheBlock and explained by Grablis, the investor currently filing a class action lawsuit against OneCoin:
“The company simply created OneCoins at will without adhering to any of the actual principles of blockchain technology.”
In addition to this, OneCoin reportedly encouraged investors to recruit new members through a referral program that would compensate them 10%–25% for every new member that purchased the company’s trader package.
This marketing initiative recruited over 3 million members worldwide, and the price of a single OneCoin reportedly grew from $0.56 to about $33.60 by January 2019. However, the coin can no longer be exchanged for other currencies and all investors are now stuck with their losses.
Have you fallen victim to a crypto Ponzi scheme before? If so, let us know in the comment section below so we can help spread awareness.